Germany and Canada to boost key mineral cooperation

By Alimat Aliyeva

Germany and Canada have agreed to strengthen cooperation in the field of critical minerals, a move driven by growing global concern over China’s export restrictions and Berlin’s strategic goal to reduce dependence on single-source suppliers.

German Economy Minister Katherina Reiche and Canadian Minister of Energy and Natural Resources Tim Hodgson signed a declaration of intent aimed at deepening collaboration in key areas such as refining, enrichment, and processing technologies for critical minerals.

The agreement focuses in particular on minerals like lithium, which are essential for the production of electric vehicle batteries, renewable energy technologies, and high-performance electronics. Both countries plan to promote joint projects through a mix of public and private investment, while also encouraging closer partnerships between companies, research institutions, and financial organizations.

Although the agreement is not legally binding and does not involve automatic financial commitments, it signals a growing sense of urgency in diversifying critical supply chains. Funding for future initiatives will depend on domestic legislation and the availability of resources in both countries.

China’s decision in April to suspend exports of rare earth elements caused major disruptions across global supply chains, impacting industries ranging from automotive and aerospace to semiconductors and defense. This development has underscored the importance of building resilient and diversified sources for strategically important raw materials.

Canada holds some of the largest untapped reserves of critical minerals in the world, and Germany, with its strong manufacturing base, sees this partnership as a step toward securing long-term resource security for its green transition and industrial competitiveness.